OptiLux is considering investing in an automated manufacturing system. The system requires an initial investment of $$4\mathrm{.}6$ million, has a $20-$year life, and will have zero salvage value. If the system is implemented, the company will save $$700,000$ per year in direct labor costs. The company requires a $12\%$ return from its investments. $($PV of $$1,$ FV of $$1,$ PVA of $$1,$ and FVA of $$1)$

Note: Use appropriate factor$($s$)$ from the tables provided.

Compute the proposed investment$$s net present value.

Using the answer from part a$,$ is the investment$$s internal rate of return higher or lower than $12\%?$ Hint: It is not necessary to compute IRR to answer this question.

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